The United Arab Emirates Dirham (AED) is the official currency of the United Arab Emirates (UAE). It is issued and managed by the Central Bank of the UAE (CBUAE), the country's central bank and monetary authority. The UAE Dirham is abbreviated as "AED" and is denoted by the symbol "د.إ" or "Dhs."
The AED is divided into 100 smaller units called fils. Banknotes are available in denominations of 5, 10, 20, 50, 100, 200, 500, and 1000 dirhams, while coins are available in denominations of 1, 5, 10, 25, and 50 fils, as well as a 1-dirham coin.
The UAE Dirham has been pegged to the US Dollar (USD) since 1997. This means that the exchange rate between the AED and USD is fixed, with 1 USD being equivalent to approximately 3.67 AED. The Central Bank of the UAE is responsible for maintaining this peg by adjusting the money supply and managing foreign exchange reserves to ensure adequate liquidity and support the AED's stability.
The pegged exchange rate provides several benefits for the UAE, including promoting trade and investment by reducing exchange rate risk for businesses and investors, maintaining low inflation levels, and providing a stable monetary environment for the country's economy.
When engaging in transactions or investments involving the UAE Dirham, it is important to be aware of the risks associated with currency fluctuations between the AED and other currencies, as well as any regulatory differences that may exist between the UAE and other countries. Thorough research and understanding of the UAE's market can help investors and businesses make informed decisions when dealing with the UAE Dirham.